Newsroom
August 28, 2015
NAFCU: CFPB should address reputational, privacy issues in database
NAFCU shared its concerns with CFPB on Friday regarding the bureau's Consumer Complaint Narrative Database, saying existing "reputational and consumer privacy issues" within the current system should be addressed first before adding functionality tools to the database.
CFPB requested industry feedback on ways the database can be amended to create usable metrics and tools for consumers to compare products and services.
"Through the current system, there remain serious concerns that personal information may be inadvertently released jeopardizing an individual's secure financial information," NAFCU Regulatory Affairs Counsel Kavitha Subramanian wrote. She recalled CFPB's June release of nearly 8,000 consumer complaints in which some were not properly cleared of personal information before they were published.
Subramanian also noted in the letter that the database is not an efficient way to resolve consumer complaints. She commented on credit unions inability to deal directly with a member who shared a complaint with CFPB because the complaint information is anonymized, leaving credit unions in a "no-win situation."
She also noted the additional and unnecessary costs to financial services providers in the current database system, as credit unions have to coordinate their complaint resolutions with CFPB, state regulators and NCUA. The CFPB's duplicative requirements on financial institutions when they receive an internal complaint are also an issue she recommended CFPB eliminate.
Subramanian concluded by saying the bureau's data normalization efforts and consumer trend analysis are ineffective tools because "there is no true mechanism of data normalization that would be able to capture differences among types of financial institutions, asset sizes and geographic areas."
CFPB requested industry feedback on ways the database can be amended to create usable metrics and tools for consumers to compare products and services.
"Through the current system, there remain serious concerns that personal information may be inadvertently released jeopardizing an individual's secure financial information," NAFCU Regulatory Affairs Counsel Kavitha Subramanian wrote. She recalled CFPB's June release of nearly 8,000 consumer complaints in which some were not properly cleared of personal information before they were published.
Subramanian also noted in the letter that the database is not an efficient way to resolve consumer complaints. She commented on credit unions inability to deal directly with a member who shared a complaint with CFPB because the complaint information is anonymized, leaving credit unions in a "no-win situation."
She also noted the additional and unnecessary costs to financial services providers in the current database system, as credit unions have to coordinate their complaint resolutions with CFPB, state regulators and NCUA. The CFPB's duplicative requirements on financial institutions when they receive an internal complaint are also an issue she recommended CFPB eliminate.
Subramanian concluded by saying the bureau's data normalization efforts and consumer trend analysis are ineffective tools because "there is no true mechanism of data normalization that would be able to capture differences among types of financial institutions, asset sizes and geographic areas."
Share This
Related Resources
Add to Calendar 2024-05-03 14:00:00 2024-05-03 14:00:00 Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing About the Webinar In January 2024, Pentegra conducted a survey of retirement plan sponsors and their perspectives on retirement plan management and fiduciary outsourcing. The survey measured how sponsors are using fiduciary outsourcing to help better manage their retirement plans. It also captured their perspectives on what outsourcing does to help them better position their plans and drive improved retirement plan outcomes. Key Takeaways: What is the full scope of your responsibilities as a plan sponsor? What is fiduciary outsourcing and how does it work? How does fiduciary outsourcing help reduce workloads and minimize risk? How can a credit union best position its plan to drive improved outcomes? Register Here Web NAFCU digital@nafcu.org America/New_York public
Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing
preferred partner
Pentegra
Webinar
Turning Lemons into Lemonade: Capitalizing in a Post-Banking Crisis Era
Strategy
preferred partner
Allied Solutions
Blog Post
Ensuring Safety and Soundness with AI
Management, Consumer Lending, FinTech
preferred partner
Upstart
Blog Post
Add to Calendar 2024-05-02 14:00:00 2024-05-02 14:00:00 Mastering Resilience in Incident Response Plans About the Webinar An Incident Response (IR) plan is crucial for guiding credit unions through major incidents efficiently and effectively. However, many IR plans lack resilience, making them less adaptable to the evolving threat landscape. Join us for our webinar Mastering Resilience in Incident Response Plans where DefenseStorm cyber experts Elizabeth Houser and James Bruhl will delve into the importance of resiliency within cybersecurity IR plans. Don’t miss out on the opportunity to learn how to: Ensure IR plan accessibility so that all team members with assigned roles are prepared for effective incident response. Conduct efficient and regular reviews to ensure roles and responsibilities are current, tools are relevant, and compliance requirements are met. Implement and utilize tabletops to regularly test the effectiveness of your IR plan. Enhance preparedness, efficiency, and confidence among responders. View On-Demand Web NAFCU digital@nafcu.org America/New_York public
Mastering Resilience in Incident Response Plans
preferred partner
DefenseStorm
Webinar
Get daily updates.
Subscribe to NAFCU today.